A meeting of the Federal Reserve Board was held in the office of the

Board on Tuesday, October 10th, 1922, at 11:00 a.m.

PRESaTT: Vice Governor PlattMr. HamlinMr. MillerMr. MitchellMr. Cris singer

Hox ton, Secretary.

Minutes of the meeting of the Federal Reserve Board held on October

5th, 1922, were read and on motion approved.

The Vice Governor reported the reserve positions of the several

Pederal Reserve banks as at close of business October 4, 5, 6, and 7.

The Vice Governor stated that the first thing in order would be the

taatter docketed as special order business for the meeting today by action

°t the Board October 5; namely, a letter dated August 31st, from the Federal

Ileserve Agent at San Francisco, reporting upon the experience of certain Call-

banks in the matter of special savings accounts as compared with ordi-

llarlr savings accounts, and suggesting an amendment to Regulation "B" of the

hcleNtl Reserve Board, defining savings deposits, said amendment being design-

tt(1 to Permit California state member banks to carry a reserve of 35" against

81)ecia1 savings deposits, thereby placing said special savings deposits in the

8841e category as regular savings deposits which may be withdrawn only upon

13tesentation of pass book.

Mr. Crissinger moved that the Board make no changein its present regulation defining savings deposits, andthat the so-called "special " savings accounts in certain"alifornia banks must hereafter be regarded as demanddeposits against v.hi ch must be carried the reserve requiredbi the Federal Reserve Act, to be carried against demanddeposits.

Seconded by Mr. Miller.Carried, Mr. Crissinger, Mr. Miller and Mr. Platt

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Letter dated dated October 2nd, from the Assistant Federal Reserve .:_gent

at San Francisco, transmitting with favorable reco-rmendation, the avlica-

tion of the Mercantile Trust Company, to establish a local agency at the

corner of Broadway and Ulloa Street, in the City of San Francisco.

Approved, Mr. Crissinepr voting "no".

Letter dated October 3rd, from the Assistant Federal Reserve Agent

at Si Francisco, transmitting with favorable recommendation, the applica-

tion of the Pacific southwest Trust and Savings Bank of Los Angeles, to

establish five branches in the city of Long Beach, California.

Upon motion, referred to Mr. Mitchell for report.

Letter dated October 5th, from the Federal Reserve Agent at Atlanta,

tl'anmmitting with favorable recommendation, the application of the Jefferson

11-Ist and Savings Bank, Gretna, La. to establish a branch at West Wego, Jef-

fersOn Parish, La.

Approved, Mr. Crissinger voting "no".

Letter dated October 4th, from the Assistant Federal Reserve Agent at

4/1 Francisco, transmitting with favorable recommendation, the application

or the Mercantile Trust Company of San Francisco, to establish a branch at

Ilit/nd, California.

Approved, Yr. Crissinger voting "no"..

Letter dated October 3rd, from the Assistant Federal Reserve Agent at

PranciEco, stating in detail the procedure which is being employed in the

that ionof the Bank of Italy, and requesting that the Board approve the

413°Intment as Assistant Federal Reserve Examiners of fourteen examiners of

t4e State Banking Department, Who are as the Federal Reserve Bank' of

44 Pl'anoisco, in the examination of the Bank of Italy.

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Referred to t 3xecu• ive Committee with power.

After full discussion of the letter with refrrence to theexamination of the Bank of Italy, Yr. moved that thefollo.,-inp; resolution be ordered docketed as special orderbusiness tomorrow, it being understood that in the meantime,the proposed resolution will be submitted to the ConferenceOf Federal Reserve Agents now in session.

”7,7}T. -TREAS, certain questions have arisen as to examination ofmember banks by Federal reserve banks and as to the -proper method ofassessing the expenses of stth examinations:

PE IT RESOLUD: First, that no examinationsShall be made by Federal reserve barks jointly with the State authorities;

Second, That in lieu of such joint examinations, Federal reservebanks, in their discretion, may make their own examinations of State memberbanks at the same time as examinations are made by the State authorities;

Third, that whenever a Federal reserve bank makes an examinationOf a State member bank or a special examination of a national bank, orWhenever such an examination is made by a Federal reserve bank upon theorder of the Federal Reserve Board, the Feueral reserve bank shall assessaP,'ainst the bank examined a charge sufficient to reimburse itself for theactual costs of such examination, including all s.laries and expenses ofsuch employees of the Federal reserve bank as are detailed for the pur-Dose of making the examination, regardless of ,,hether or not such exa-nina-tion i s made at the same time as an examinati n is made by the State au-thor it ies;

Fourth, that whenever a Federal reserve bank permits some of itsexaminers or other employees to serve temporarily on the examining forceOf the State authorities in examinations made by the State authorities, theItederal reserve bank shall require from the State authorities reimbursemr-ntfor the actual costs incurred by the Federal reserve bank, includins thesalaries and expenses of all employees detailed by the Federal reservebanks for the purpose of assistin-, the said State authorities.

Fifth, that whenever a Federal reserve bank, in making its ownexamination of a member bank shall employ examiners of a State bankinP de-Partment , the 2ederal reserve bank is authorized to reimburse the Statebanking department for the costs incurred by said State banking department,including the salaries and expenses of all employees of the State bankingdepartment used by the federal reserve bank in making such examinations:1)Pl'ovided, however, that in all such cases such employees of the Stateallkin 7, department shall first be regularly appointed as examiners oraSsistant examiners of the Federal reserve lank and such appointmertsshtlill be approved by the eederal Reserve Board.

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Matter referred referred back to the Committee on Salaries and Charge Offs

137 action of the Board. at its meeting of September 26th. Memorandum dated

September 14th, from the Secretary of the Board, with reference to a letter

Of August 28th, from the Chairman of the Federal Reserve Bank of Kansas City,

*ansraitting the action of the Board of Directors of that bank in fixing the

salary of Counsel James 2. Goodrich at5,000 per annum, in lieu of present

salaries and fees, effective September lst,1922.

Upon motion, the action of the Board of Directorsof the Federal Reserve Bank of Kansas City was approved.

In pursuance of the action of the Board tan on October 3rd, there-

by. it Was voted that in the future, beginning at a date to be determined by

he '2,xecutive Committee, the Federal Reserve banks in computing their reserves

ell°41d. not include in their reserves, subsidiary silver held by them, upon

tn°tion the F,xecutive Committee wa.s requested to defer the determination of the

cle'te referred to above until the Committee shall have an opportunity to take

?natter up with the Undersecretary of the Treasury and report back to the

13c)ard.

Memorrtndum dated Sept ember 15th, from the General Counsel, ex-

his' views upon the oiiinion of the Attorney General of the United

Btatas dated August 21st, 1922, with reference to the administration of the

Ci/Vt°n Act.

Ordered circulated.

Memorandum dated October_ 10th, from the Assistant Secretary of

the 13°"cl, advising that the Assistant Federal Reserve Agent at Boston had

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telephoned that the Rhode Island Hospital Trust Company of Providence, R.I.,

desires to accept drafts drawn by banks or bankers in Argentina for t he pur-

Pose of creating dollar exchange, and that the Federal Reserve Bank of Boston

recommends approval.

Up'on motion, the Board approved the application of the

Rhode Island Hospital Trust Company of Providence, R. I.

to accept dollar exchange drafts drawn by banks or bankers

located in Argentina and. in the other countries heretoforeapproved by the Board.

Letter dated October 7th, from the Comptroller of the Currency, advising

Of a change made in the National bank examining force during the month of

Sept erab er :

District No. 2.

W. W. Maloney, 3rd, appointed and assigned to this District.

Noted.

ORTS OF C0ITTEE NO. 1.

bated October 5, Reconnending changes in stock at Federal Reserve banks7, as set forth in the Auxiliary minute book of this date.9,

Approved.134tecl October 5, Recommending aption on application for admission of

state bank, subject to the conditions stated in the in-.dividual report attached to the application, as setforth in the Auxiliary minute book of this date.

Approved.b4ted October 6, Recommending action on applirations for fiduciary

powers as set forth in the auxiliary minute book of

this date.Approved.

bat ed October 5, Recommending approval of the application of Mr.

Rawleii Warrer to serve as director of the

Drovers National Bank, and the Drovers Trust and

Savings Bank, both of Chicago, Illinois.

Approved.

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CSOF NO. 1 (Cont Id)

Dated October 5, Recommending approval of the application of Mr.Henry Veeder to serve as director of theDrovers National Bank, aid the nr(vers Trust and

Savin gs Bank, both of Chi cagy, Illinois.Applo ved.

Dated October 5, Recommending approval of the application of Mr.Fred N. Mercer to serve as Vice President anddirector of the Drovers National Bank, and theDrovers Trust and Savings Bank, both of Chicago,Illinois.

Approved.Dated October 5, Recommending approval of the application of Mr.

William C. Cummings to serve as President anddirector of the Drovers National Bank, and theDrovers. Trust and. Savings Bank, both of Chicago,Illinois.

Approved.

413Proved:

At one o'clock the meeting adjourned,

W'ye?vVice Governor.

Secret ary.

kJ'

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